Contract Farming Resource Centre

Agriculture, Jobs, and Value Chains in Africa

Organization World Bank Group
Year 2020

[Christiaensen, L. (2020). Agriculture, jobs, and value chains in Africa.]

A conceptual framework is developed to guide policy decisions toward adoption of inclusive Value Chain Development (iVCD) and integration of poor smallholder farmers into agricultural value chains to create thriving job markets in the rural space in consideration of the context in Africa where the continent’s agriculture and food systems are critical to job creation. It is further discussed how iVCD can raise smallholder incomes and benefit the poor, minorities, and women since such programs better link farmers in these underrepresented groups to buyers and other stakeholders thereby improving their economic accessibility. For example, through contract farming, it was shown to increase smallholder farmers’ incomes. iVCD program success factors involve the proper qualification of competitiveness and sustainability of a product value chain, starting small, involving financial institutions, monitoring producer-buyer relationships, and sustaining capacity building. Finally, iVCD is usually not effective at raising staple crop productivity which is critical for food security and transforming agricultural sectors. Increasing staple crop production requires public investment in agricultural Research and Development (R&D), extension services, irrigation, and rural infrastructure. Further evaluation is still needed for various aspects regarding the implementation of iVCD programs. Identification of the best entry points for support – whether through farmer organizations/cooperatives, large anchor firms and/or Small and Medium Enterprises (SMEs), or stakeholder platforms – is an example of one such area requiring additional exploration for agricultural iVCD.